Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Goldman Sachs Group Inc    GS

GOLDMAN SACHS GROUP INC

(GS)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Goldman Sachs' equities-backed earnings results may face pressure

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/18/2019 | 04:59pm EDT
The Goldman Sachs company logo is seen in the company's space on the floor of the NYSE in New York

NEW YORK (Reuters) - Booming stock markets around the globe helped Goldman Sachs Group Inc offset declines in other businesses last quarter, but those gains may not be sustainable, analysts said.

The biggest contributor to the bank's profits was the $1.5 billion (£1.20 billion) it notched from its own equity investments – including $375 million from electronic trading company Tradeweb – some of which it sold during the second quarter.

Its investment bankers also handled more stock offerings than any rivals during the period, which in turn helped boost revenue from equity trading, where Goldman is also nabbing market share.

These were all bright signs in otherwise dreary results for Goldman Sachs, however. Its revenue from other major businesses, including bond trading, M&A and investment management, all fell.

Analysts warned that without more insight into how Goldman racked up equities gains last quarter and the stock market facing headwinds, they are not giving the results much weight.

"We consider these to be solid results given the operating environment ... but they underscore the importance of the firm's strategic initiatives," wrote David Fanger, senior vice president at Moody's.

Excluding the gains from Tradeweb, Fanger said the bank is facing "muted client activity levels...investor concerns over trade and tariffs, uncertainty over shifts in central bank policy, and tighter credit markets compared with a year ago."

Goldman Sachs is in the middle of a front-to-back business review launched by new Chief Executive David Solomon aimed at adding new businesses like credit cards and cash management to diversify the bank's revenue streams. Goldman's IPO investments were the biggest star of the second quarter. The investing & lending division reported net revenues of $2.5 billion, its highest in 8 years.

The bulk of revenues came from the performance and some sale of investments in Tradeweb Markets Inc, Avantor Inc, Uber Technologies Inc and Headhunter Group Plc, which together make up 55 percent of the bank's public investment portfolio.

While competitor banks JPMorgan Chase & Co and Citigroup also reported big gains this week from investments in Tradeweb, Goldman's gain had a proportionately bigger impact because it is smaller, analysts said.

Still an adroit trading house, Goldman reported equities trading revenues of $2 billion, or a 6 percent rise from last year, outperforming rival banks that reported equities revenue declined.

The bank said it benefited from improved client activity and market share.

Deutsche Bank AG put its share of the market up for grabs earlier this month when it said it would close its equities trading business.

"The success that Goldman had this quarter (in equities trading) is definitely a more sustainable performance than the large gains in the investing & lending business," said UBS analyst Brennan Hawken.

"To the extent that people want to trade they'll continue to have momentum there with clients."

(This story has been refiled to add "face" to headline.)

(Reporting By Elizabeth Dilts; Editing by Sonya Hepinstall)

By Elizabeth Dilts

Stocks mentioned in the article
ChangeLast1st jan.
AVANTOR INC 0.51% 17.8 Delayed Quote.0.00%
CITIGROUP INC. 1.04% 63.91 Delayed Quote.22.76%
DEUTSCHE BANK AG 1.94% 6.471 Delayed Quote.-7.12%
GOLDMAN SACHS GROUP INC 0.87% 202.42 Delayed Quote.21.17%
HEADHUNTER GROUP PLC 0.22% 18.04 Delayed Quote.0.00%
JP MORGAN CHASE & COMPANY 1.03% 108.72 Delayed Quote.11.37%
UBER TECHNOLOGIES INC -2.61% 34 Delayed Quote.0.00%
UBS GROUP 1.36% 10.44 Delayed Quote.-16.43%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on GOLDMAN SACHS GROUP INC
08/22NEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
08/22NEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
08/22Consumers Drive RBC Profit Rise -- WSJ
DJ
08/22NEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
08/21Financials Rise With Treasury Yields -- Financials Roundup
DJ
08/21NEWS HIGHLIGHTS : Top Company News of the Day
DJ
08/21Health Care Higher, Hedge Funds Reportedly Pile Into Sector -- Health Care Ro..
DJ
08/21NEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
08/21NEWS HIGHLIGHTS : Top Company News of the Day
DJ
08/21NEWS HIGHLIGHTS : Top Company News of the Day
DJ
More news
Financials (USD)
Sales 2019 35 399 M
EBIT 2019 12 351 M
Net income 2019 8 606 M
Debt 2019 236 B
Yield 2019 2,07%
P/E ratio 2019 8,79x
P/E ratio 2020 8,14x
EV / Sales2019 8,73x
EV / Sales2020 8,61x
Capitalization 72 783 M
Chart GOLDMAN SACHS GROUP INC
Duration : Period :
Goldman Sachs Group Inc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GOLDMAN SACHS GROUP INC
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 28
Average target price 236,08  $
Last Close Price 202,42  $
Spread / Highest target 58,6%
Spread / Average Target 16,6%
Spread / Lowest Target -13,5%
EPS Revisions
Managers
NameTitle
David Michael Solomon Chairman & Chief Executive Officer
John E. Waldron President & Chief Operating Officer
Stephen M. Scherr Chief Financial Officer & Executive Vice President
James A. Johnson Independent Director
William W. George Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
GOLDMAN SACHS GROUP INC21.17%72 157
MORGAN STANLEY1.56%66 012
THE CHARLES SCHWAB CORPORATION-8.81%49 163
CITIC SECURITIES COMPANY42.16%35 737
HUATAI SECURITIES23.64%23 396
CHINA SECURITIES CO LTD119.29%18 131